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Monday, 23 October 19:45 (GMT -05:00)



Business And Politics News

US Banks Passed Stress Tests


 

US bankin gnews. Stress tests for banks may be called one of the key moments of this week. On Tuesday FRS announced the results of stress tests for banks. Reports show that the majority of large-scale US banks are able to fulfill their obligations in extremely non-favourable economic circumstances. The situation may then develop in the following way:
  • Unemployment growth to 13%
  • Price drop by 50%
  • Drop of housing price by 21%

In such a case, the loss of 19 largest banks would amount to 534 bln. dollars. Despite considerable drop of predicted capital, 15 out of 19 holding banking companies will keep their capital four times higher than its normative value.

According to Aleksei Afanasiev, the head of the Department of Portfolio Investments of Masterforex-V Academy, last week’s macroeconomic data was mostly positive:
1. Retail sales rose by 1.1% in February, taking into consideration seasonal fluctuations. In comparison to February 2011, sales have risen by 6.5%. January sales have risen from 0.4% to 0.6%.

 

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2. Industrial production remained the same. Capacity ratio is falling. It has dropped by 78.7% or by 1.6 points from the average since 1972. Its value is 18.3% lower than before crisis. Capacity ratio in January has been lowered from 78.5% to 78.8%. Industrial output did not change in February. Market consensus was slightly worse than expected.
 

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3. Reports of Philadelphia FRS about national production volume slow minor increase in January. Current activity index in March amounted to 12.5 and showed the increase by 2.3 basic points, which is the maximal point since April 2011. General business index remained almost the same in March and amounted to 20.2.

4. Weekly unemployment claims have dropped to 351 000. The four-week moving average is close to the lowest point since the beginning of 2008.

 

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5. Consumer sentiment index dropped to 74.3 in March from 75.3 in February, which is lower than market consensus. Consumer’s general sentiment is rather weak and does not show certain signs of recovery. Small business index slightly rose in February. It has risen form 93.9 to 94.3, which is the 6th rise in a row. However, the index remains at a rather low point due to slow economic growth.

Rally, which started since the beginning of the year, is getting weaker and casts pressure on investors’ psychology. We are currently observing overbought market, and there remains the only question: “will the future correction amount to 3-5% or 10-15%, or something else?”. We recommend redistributing the portfolio, for we believe that aggressive buying at current points are inappropriate.

 

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Referendum In Catalonia May Hit Europe Harder Than Brexit

The possibility of Catalonia exiting from Spain is dangerous to the integrity of the European Union, even more dangerous than the Brexit. This is what The Daily Telegraph thinks on the matter.

 

Publication date: 01 October 04:58 AM

Trump Announced Revolutionary Tax Cuts for Americans

On Wednesday, September 27th, President Trump announced a tax reform. The thing is that Donald trump promised this tax reform when making his election pledges in 2016.

Publication date: 29 September 07:51 AM

What is so precious about Ukraine for international investors? An American businessman shares his opinion

More and more international investors have been paying attention to Ukraine as a promising area for profitable investing. Cody Shirk, an American entrepreneur, traveler and investor, is now urging international investors to look at Ukraine as a country with really great investment potential, Market Leader reports.

Publication date: 27 September 03:16 AM

China’s Debt Bubble May Trigger Another Global Financial Crisis

The Chinese economy keeps on slowing down as China’s debt bubble is growing. International experts are concerned about that. They are afraid of a new global financial crisis, Market Leader reports. The thing is, the Chinese economy is not growing fast enough anymore. Beijing has to admit the economic slowdown. The entire international expert community is now closely watching this slowdown and expressing their concerns about China’s economic prospects amid the mentioned economic slowdown and inflating debt bubble.

Publication date: 25 September 12:44 PM

Why Is German Parliamentary Election Important to Europe?

Judging by the results of several sociological surveys, the chances of electing Angela Markel for the next 4 years is fairly high at the moment. Even though there is almost no intrigue in the election, the international community has still been closely watching it, Market Leader reports

Publication date: 24 September 12:55 AM

Bitcoin Market Cap Exceeds $150 Billion

Bitcoin’s market capitalization exceeded $150 billion the other day. At the same time, the international expert community keeps on pondering upon the near-term prospects of Bitcoin and other digital currencies.

Publication date: 03 September 11:22 PM

American Sanctions Will Cut Investments In Russia

Some experts say that the next round of anti-Russian sanctions imposed a couple of weeks ago is going to undermine the Russian economy. In particular, they are threatening the investment capital inflow.

 

 
A few weeks after Donald Trump reluctantly signed the new sanctions approved by the U.S. Congress, Russian and foreign investors are still trying to figure out what the actual consequences of this decision are going to be. For now, they seem to have understood enough to be afraid of long-term negative consequences for their existing or potential investments in the Russian economy, which has just started recovering after a 2-year recession.
 
Publication date: 31 August 01:44 AM

New U.S. Sanctions Against Russia Will Result In Geopolitical Changes

Political expert Lilia Shevtsova commented on the new sanctions against Russia imposed by the United States. She claims that the geopolitical situation in the world is going to change in the near future due to the sanctions.

 

She claims that introducing those sanctions was like a surgery. As the result of this surgery, the USA got rid of a foreign body. After that, Washington is probably going to reset their foreign policy. However, nobody can definitely say what exactly this event is going to result in. But one thing is sure – something is definitely going to change in the world order, and this creates certain threats for Russia.

Publication date: 28 August 03:32 AM

New Sanctions Against Russia Will Last Long

Russian political expert Leonid Shvets commented on the new round of anti-Russian sanctions. For starters, he claims that Russia has already turned into America’s biggest enemy. The thing is that the new law signed by Donald Trump not so long ago is designed to fight America’s enemies with the help of sanctions. North Korea and Iran are also on the same list.

 

 
Publication date: 28 August 01:02 AM

New Sanctions Will Hit Putin Personally, Piotrovskiy Says

This time, American sanctions are going to hit even Vladimir Putin himself, Andrey Piotrovskiy says. He says that the devil is in the detail. The thing is that the new sanctions approved by the U.S. Congress and signed by Donald Trump (even though he was against those sanctions), obliges the U.S. financial intelligence to provide the Congress with the information on all the known and probable assets belonging to the all the high-ranking Russian politicians, including Russian President Vladimir Putin. With that being said, it’s not accidental, that Putin is mentioned several times in the document.
 
Publication date: 27 August 11:35 AM